South African Diplomat Says US Demands on Affirmative Action Complicate Trade Talks

A senior South African diplomat said on earlier this week that American demands regarding domestic affirmative action policies were complicating efforts to secure a trade deal, just days before a 30% tariff on South African exports to the US takes effect, reported Reuters.

South Africa has spent months attempting to persuade US President Donald Trump's administration to lower the tariff rate or exempt key industries to avoid tens of thousands of potential job losses, but has struggled to make progress even as others such as Japan and the European Union have struck deals.

Diplomatic relations between the two countries have been strained by South Africa's Black Economic Empowerment (BEE) policies designed to address the legacy of centuries of racial inequality and its genocide case against Israel at the World Court, which Israel and the US vehemently oppose.

Zane Dangor, director-general at the Department of International Relations and Cooperation, told a seminar in Johannesburg that American counterparts had been clear in meetings "that there are certain things they expect from South Africa, and BEE was high on the agenda".

He did not specify what the US was demanding. The country's BEE laws, which Trump has criticised, offer incentives to companies to hire and promote Black people and in some cases require a certain percentage of Black shareholders to obtain a licence.

"Clearly I think what worries us is demanding from us curtailment of sovereignty on certain issues to get this (trade) deal," Dangor said, adding he could not elaborate because of a non-disclosure agreement.

The Office of the US Trade Representative did not immediately reply to a request for comment.

South Africa's trade ministry said on Tuesday that it was still hoping to agree a deal with the US.

However, it said it had yet to receive a firm answer to an offer it had made on buying American liquefied natural gas, simplifying rules for US poultry imports and investing $3.3 billion in American industries such as mining.

South Africa also wants to exempt certain sectors from tariffs such as ship-building and counter-seasonal agricultural trade, the trade ministry said.

The US is South Africa's second-largest bilateral trading partner after China. South Africa's central bank governor has said the proposed tariff could cause around 100,000 job losses, with the agriculture and automotive sectors hit hardest.

South African Diplomat Says Us Demands On Affirmative Action Complicate Trade Talks 1